Research and Development Allowances
Research and development allowances (RDAs) are available on certain capital expenditure. RDAs can be utlised at 100%.
A balancing charge will occur at the point the asset is sold or demolished, but not if the asset ceases to be part of the research and development activity in subsequent years.
Expenditure on Research and development includes includes the following types of activity:
- Providing Facilities for carrying our R&D
- Provisions for Laboratories
Addition/modification of pilot plant and machinery
There is a 25% test for dwelling use within the building. In some cases the whole building may qualify.
The concept of research and development must be looking to or exceed an extension of a companys’ current trade.